Ocado’s shares keep falling in worst flotation for 13 years

Shares in Ocado tumbled a further 4% today, adding to yesterday's 7% slide and making it even less likely that retail investors will buy into what has been the worst stock market flotation since 1997.

Having dropped its pricing range from 200p-275p to 180p-200p, the float was finally priced at 180p yesterday. It fell as soon as trading began, and dipped a further 6.75p to 160.25p today.

COMMENT: REASONS TO BE FEARFUL

Will everyone please stop comparing Ocado with online fashion store Asos? How many times have we had analysts comparing, favourably or unfavourably (depending whether or not their banks were working on the Ocado float) these two utterly different businesses?

OK, so they both sell stuff over the internet. Quite nice stuff, actually. But there the comparison ends. You might as well compare Ocado with Admiral Insurance or, I dunno, petdrugsonline (Britain's top animal medicine peddler, apparently).

I know, I know, it's hard valuing a company that nobody's bothered trying to copy or buy, but there must be better ways than this. Let's have a quick stroll through the reasons:

Ocado remains lossmaking after 10 years: Asos has made a profit every year since 2004.

Ocado needs hundreds of vans to deliver its groceries: Asos just needs first-class stamps.

Ocado's products require expensive refrigerated warehousing: a big shed is good enough for Asos.

Ocado needs a new £200 million warehouse to expand in the north: to expand around the world, Asos just needs slightly costlier stamps.

Ocado's founders are former investment bankers: Asos's Nick Robertson is a marketer with retail genes from his great-grandfather Austin Reed.

Ocado just grabbed £200 million from investors: Asos has only ever raised £2.8 million.

Ocado shares are a stinking sell: Asos is definitely worth holding.

Enough.